Customer Experience

(Guest article by Renee Thiesing)

I recently found myself in a situation that can only be described as completely frustrating. And as an Industrial Engineer, it was even more frustrating because with just a small amount of reorganization and process enhancement, the customer experience could be improved tenfold. No, this aggravating experience did not occur at the Department of Motor Vehicles, it transpired at a children’s ski school drop off counter.

I arrived with my daughter at 8:45am, which is in the middle of the recommended arrival time slot of 8:30-9:00am. The line of about 6 people was making the very small lobby area seem tiny. Besides the fact that the line was moving incredibly slow, when the person at the front of the line arrived at the counter, there was no clear process that occurred. Some people had reservations, some did not. Some people needed to rent equipment, some did not. Depending on your situation, the time that you spent at the counter when you reached the front of the line, varied. It seemed there was no clear benefit to having reservations. And for those poor people who were renting equipment (myself included), after finally reaching the front of the first line, we were sent upstairs to an even more chaotic ski rental area. As we joined the back of another line, I realized that this line was only for boots. Once my daughter was finished getting fitted for boots, I needed to go to the other side of the room for skis. And was the line I waited in for skis the final line? No. Next, we trekked back downstairs to where we started, only to join another line. Here is where we waited for my daughter to finally enter the ski school. After it was all said and done, it was one hour later and the world was left with yet another dissatisfied customer.

I can’t help wonder how some simple changes might improve the system. What if they assigned a certain number of people to arrive at 8:30am, another group to arrive at 8:45am and yet another at 9:00am? Would this arrival process help reduce the time customers wait in line? I believe there should be a clear benefit to people who have reservations. Would their experience be improved if they had a line separate from the people who did not reserve a spot? One of the most annoying aspects of the system was that we had to go upstairs and wait in line to rent our equipment. Non ski school patrons were mixed in with ski school children in this room. At the very least, ski school participants should receive priority for being served. But even better, I would like them to analyze the costs and benefits of moving some equipment rental downstairs to the ski school. I would like to drop my daughter off and let them employees fit her for both her skis and boots right there in the room where she’ll eventually begin her lessons. By having her sizes in my reservation file, they could have the equipment ready in the downstairs area.

This is a very simple system. But since it is broken, perhaps they need a demonstration of how it can be improved. Simulation anyone?

Renee Thiesing
Application Engineer – Simio LLC

Simulation and Strategic Management

Guest article from Marco Ribeiro

Corporations everywhere today face the huge challenge of surviving and growing in an extremely competitive environment. Markets are shaped and reshaped due to constant innovation, customer demands and fierce competition. All these forces demand that corporations continuously reinvent themselves trying to maintain competitive advantages that differentiate them from the competition.

Strategic planning in such an environment is a difficult challenge that corporations must overcome successfully. Corporate strategic planning deals with such complex issues as:

    * Understanding the market and its future trends – understand suppliers, competition, their competitive advantages and market positioning. Know the future trends that will shape the market.
    * Future resource allocation – how the corporation’s resources should be organized in order to maintain an efficient operation.
    * Scope of operations -in which businesses should the corporation operate, which ones should be dropped out
    * Diversification of the corporation’s business – should the corporation focus its operations in a small and related set of businesses or should it look to diversify to heterogeneous businesses
    * Future structure of the company – draw the boundaries of the corporation and determine how these boundaries will affect relationships with suppliers and customers

The strategy defined will address all these issues in detail and determine the future direction of the corporation.

Can we use simulation to support the strategic planning process?
Yes, we can. As Thomas Davenport and Jeanne Harris describe in their book: Competing on Analytics: The new Science of Winning, we will see an increasing demand and use of analytical technologies supporting corporation’s decision-making processes.

Simulation can play an important role by helping managers create models of their markets and processes and “toy” with them in order to get a deeper understanding. We can also use simulation to support such efforts as portfolio analysis and management, helping managers determine how to most effectively manage and configure their product life cycle. We can build models of processes and determine the most efficient configuration. Simulation is a valuable tool to test scenarios and make better business decisions.

Marco Ribeiro
LinkedIn Profile

Industrial Engineers are Happy

I just saw an interesting article written by the Institute of Industrial Engineers (IIE) citing a National Opinion Research Center study at the University of Chicago. According to that study, Industrial Engineering is one of the top ten occupations when rated by job satisfaction and overall happiness. I have long been an IE evangelist, because I feel it is a great career choice, but it never hurts to have some additional evidence.

The study goes on to evaluate compensation for each of those professions and concludes that IE’s are the third highest paid group out of those top ten happiest careers. While I think it is a mistake to choose a career primarily based on financial compensation, it is a nice bonus when a career that makes you happy also pays well.

Here is a short article summarizing the results: Industrial engineering for your mental health?

I’ve always felt that IE was one of the best career choices possible. And I think this is especially true in the field of simulation.

I personally try to visit a few high school classes each year to help students discover our profession and help motivate them to excel in the classes that they need to be successful in engineering. IIE can help you do this.

I urge you to also get involved with your local high schools and help spread the word.

Dave Sturrock
VP Products – Simio LLC

Professional Development

The annual Winter Simulation Conference (WSC) starts two weeks from today. Initially as a practitioner and then later as a vendor I have attended over 20 of these conferences in addition to dozens of other similar events. WSC is just one of many events that you could choose to attend. But why should you attend any of them?

All such events are not identical, but here are a few attributes of WSC that are often found in other events as well:

Basic tutorials – If you are new to simulation, this is a good place to learn the basics from experienced people.

Advanced tutorials – If you already have some experience, these sessions can extend your skills into new areas.

Practitioner papers – There is no better way to find out how simulation can be applied to your applications than to explore a case study in your industry and talk to someone who may have already faced the problems you might face.

Research – Catch up on state-of-the-art research through presentations by faculty and graduate students on what they have recently accomplished.

Networking – The chance to meet with your peers and make contacts is invaluable.

Software exhibits and tutorials – If you have not yet selected a product or you want to explore new options, it is extremely convenient to have many major vendors in one place, many of whom also provide scheduled product tutorials.

Supplemental sessions – Some half and full day sessions are offered before and after the conference to enhance your skill set in a particular area.

Proceedings – A quick way to preview a session, or explore a session that you could not attend. This serves as valuable reference material that you may find yourself reaching for throughout the year.

I think every professional involved in simulation should attend WSC or an equivalent conference at least once early in your career, and then periodically every 2-3 years, perhaps rotating between other similar conferences. If you want to be successful you have to keep your skills and knowledge up to date. And in today’s economy, a strong personal network can be valuable when you least expect it.

I hope to see you at WSC in Miami!

Dave Sturrock
VP Products – Simio LLC

Read My Project Report!

I read a lot, both for business and pleasure. But it seems I never have enough time. So when I sit down with a magazine, for example, most articles probably get less than a couple seconds of attention. Unless an article immediately captures my attention, I quickly move on to the next one. I know that I occasionally miss out on good content, but it is a way to cope with the volume of information that I need to process each day. Consider the implications when you are writing a project report for others to read…

We are all busy. When we are presented with information to read or review, we often don’t have time to wade through the details to see if the content merits our time.

Tell me the most important thing first! Give me the summary! How many times have you asked (or wished) for that?

At one point, it was common to give presentations by starting with an introduction, building the content, and ending with the conclusion – “the big finish”. While this is appropriate for some audiences, many people don’t want to take the time to follow such a presentation. Instead, they want to be presented with a quick overview and a concise summary first. They will then decide to read on if the overview has captured their interest and they need more information.

Think about your own experiences. When you have a document to read and you are not sure it is worth your time, what do you do? If you are like most people you will probably consider most, if not all of the following:
• Does the title look interesting?
• Do you know/respect the author?
• Scan the major headings or callouts for content of interest.
• Scan any pictures/diagrams for content of interest.
• Evaluate the summary or abstract.
While the order and details might differ slightly, at each stage of the above process if you are not convinced of the value of continuing, you will put the document aside. Only after the document has passed this gauntlet of tests, will you spend the time to seriously read the content.

What can we learn from this?

Content is not enough. The best content in the world is of little value unless it is read.

When you are preparing a project report, try to get inside the head of your target audience. If you expect that they will also have a process something like the above, spend adequate time on those parts. Take an extra minute to create an interesting title. Add major headings and callouts to help focus the reader’s attention. Add some figures to help convey and support your message. Have a good abstract and/or summary that is easy to find to help your audience quickly get the point of your report.

Write each report so everyone, including your busy stakeholders, will take the time to read it. Keeping these simple suggestions in mind will help you succeed at getting your message across.

Dave Sturrock
VP Products – Simio LLC

Simulation Applications in Assembly

Assembly processes are a common part of manufacturing and can be found in applications as diverse as apparel, electronics, automotive, aerospace, and even food processing. Assembly operations share many common simulation applications with general manufacturing, but also have many unique characteristics and problems which can often be assisted using simulation.

Material handling and other automated equipment are prevalent in most assembly operations. Simulation can help both in the initial design as well as analyzing to get improved efficiency.

I have found that most people think they can predict process variability fairly well, but when pressed to predict the behavior of even the simplest system, they fail miserably. This is a dangerous combination. Process variability can make the performance of typical systems hard to predict and overconfidence can lead you to incorrect decisions. Fortunately, simulation can provide extensive analysis to project performance, demystify variability, and reduce risk.

Often assemblies are made following a Bill of Material (BOM). Some simulation software has built-in BOM modeling features to make this easy. Whether your supply chain for the assembly involves only other departments in the building or involves off shore companies, simulation can help you assess the supply chain risk and design a system to meet corporate objectives.

For both manual and highly automated systems, line balancing can be a difficult task in assembly. Getting it wrong, even by a small amount, can result in an expensive loss of efficiency. Simulation can help not only tweaking a system for optimal efficiency, but also evaluating major changes in a safe, inexpensive, off-line environment.

Assembly operations can be capital or labor-intensive. Effective allocation of capital and labor is often a need that simulation can fulfill. Simulation can help identify bottlenecks and underutilized resources so that you can gain insight into your operations and get more out of your resources.

Markets change. Technology changes. It sometimes seems like the sole job of Marketing is to make your job miserable by introducing new productivity-damaging products. Simulation can help you respond to change requests with objective data about the cost and other impacts to your system.

It is well known that simulation technology is very effective at creating work schedules while taking into account the complexities of the facility. A few simulation products offer features to enable this application. You can even use the model built for optimizing design as the basis for a plant scheduling model.

In summary, simulation applied to assembly like in other applications, can help streamline designs, reduce risk, improve throughput, and increase your bottom-line profitability.

Dave Sturrock
VP Products – Simio LLC

Simulation in Agriculture

Guest article from Sophie Scotts

Over the past several months you have touched on many fields that simulation would benefit such as healthcare and disaster management. I would like now to recall something you said in your “Simulation Expertise through Tours” blog from September, “Don’t limit yourself to just your area of interest/expertise. Often you can learn even more from tours outside your comfort zone.” I think for many professionals in the simulation industry, applying simulation to the field of agriculture might be out of your expertise or comfort zone, but don’t let this stop you.

Since I work for the United States Department of Agriculture (USDA) I see first hand how beneficial simulation could be to our American farmers. Nowadays farmers must be laborers and savvy business men in order to survive in our current economy. It isn’t just milking old Bessie in the barn anymore; they must consider how each area on the farm affects the bottom line, just like any business. Farmers must look at the efficiency of their livestock and harvesting processes and the possibility of diversification in order to stay in business, and simulation could help in each of these areas.

Any farm that has livestock has 3 main questions they must ask themselves; How do I efficiently get livestock onto my farm? How do I efficiently get food to my livestock? And how do I efficiently use (or dispose of) the waste? If they are a dairy they must also consider the most efficient method to milk the cows. For instance, a poultry facility will house several thousands chickens a year for a few months each. During each cycle the chicks are trucked in, food is trucked in (or harvested from the fields), chickens are provided a specified amount of food and space, then they are trucked out (full grown), and wastes are trucked out so the nutrients can be utilized elsewhere. This process could benefit from simulation to create the most efficient scenario.

It is very common now for farmers to turn to non-traditional methods of bringing income onto the farm. One of these methods is to direct market their goods to the public through farmers markets, community supported agriculture (CSA), or opening stores on-property. They must ask themselves; How do I efficiently transport my products to the farmers market? How do I efficiently package and deliver my products to my customers? Or how do I handle parking and lines in my store? Simulation in each of these processes would allow the farmer to make an informed decision on the best management of his business.

So you can see that simulation can have a place in even the most unlikely fields (literally). American farms are a business and thus need to consider the efficiency of processes they undertake in order to meet the bottom line, and simulation can help. So don’t be afraid to think outside of the box and your area of expertise.

Sophie Scotts
United States Department of Agriculture

Help Wanted

Yes, it looks like hard economic times may be coming. But no, this has nothing to do with that.

This blog is a community service. To continue to be effective, we need community participation. That means you.

There are many ways you can participate.

1) Comment – At the end of each article is a link. Click it and add to the discussion. Agree. Disagree. Add new information or a different viewpoint. All civil discussion is welcome.
2) Suggest Topics – Contact me with any ideas you have about future content or ideas for making the blog more useful.
3) Write an Article – It doesn’t have to be rocket science. Nor does it have to be long or formal. Everyone has something to share. The main rule is to keep it unbiased and non-commercial. I am happy to edit it if you like and even publish it under a pen name if you are publicity shy (although I strongly prefer using your real name).
4) Become a Guest Author – I would like nothing better than to “share the limelight” with others. You can write one article or regular articles. Choose your own topics and frequency.

It’s all about sharing to help the simulation community. This is a simple way to give back. Anyone can do it. For any of the above or other ideas, you can contact me using dsturrock at Simio dot biz (name slightly obscured to slow down spammers).

Thanks for your help.

Dave Sturrock
VP Products – Simio LLC

Simulation in Healthcare

Over the years, I have had several occasions to use medical facilities for myself and my family. Some visits were routine, such as for a diagnostic tests or images. Others were for much more critical visits to an emergency department. As my visits spanned many facilities and many time periods, I observed a dramatic difference in the service provided. In the case of bad service I just had to wonder “Didn’t anyone ever study this operation? Did anyone ever simulate it?”

Simulation can bring significant benefits to healthcare, just as it does in other types of systems. Some of those benefits come from the simulation’s ability to:
• Account for variability in human behavior
• Account for variability in demand
• Capture complexities and interdependencies
• Capture system performance over a period of time
• Support continuous process improvement and evaluation of new scenarios
• Provide an objective basis for evaluating policies and strategies

Here are a few possible applications to illustrate how simulation is often used in the healthcare industry:

New Facility Design – Evaluate design to assure that present and future objectives will be met. Reduce capital costs by “running” the facility under various scenarios and identifying excess capacity . Reduce operating costs by supporting lean and six sigma analyses. Increase throughput through process flow optimization and identification of bottlenecks and capacity constraints.

Emergency Department (ED) – Decrease LOS (Length of Stay) and LWBS (Leave Without Being Seen) yielding higher patient satisfaction. Improve staff efficiency and improve room and resource utilization resulting in lower costs.

Outpatient Lab and Surgery – Determine optimal staff and resource allocation. Balance scheduled demand with the often-critical unscheduled demand. Decrease lab and diagnostic turn-around time. Identify non-value-added and redundant processes.

Ambulance Service – Evaluate operational scenarios for both road and air-based vehicles. Evaluate new technology to determine their effect on the entire system. Pre-plan dynamic utilization-based response guidelines to optimize performance during major ED demand periods.

Vaccine Distribution – Evaluate regional material stocking strategies, distribution strategies, and staffing.

Often the benefits from these studies are reported in the millions of dollars so they are well worth the undertaking.

One source of additional information is the Society for Simulation in Healthcare which is having their annual conference in January. Another source is the Society for Health Systems which offers the latest in process analytics, tools, techniques and methodologies for performance improvement.

Dave Sturrock
VP Products – Simio LLC

Data Collection Basics Part 2

Last week in Data Collection Basics (Part 1) I discussed data collection, introducing the topics of identifying required data and then locating or creating that data. Once you have some data, you typically need to do some analysis on it before you can effectively use that data.

Select Distribution. Typically input data to a simulation model is specified as a distribution. If you have estimated data you must select the most appropriate distribution (for example a minimum time, typical time, and maximum time may be represented as a Triangular distribution). If you have actual data, then you will need to run a statistical analysis on it. Many software products (some generic and some simulation-specific) are available to help you with selecting (fitting) a distribution and its shape parameters, and even with cleaning the data to eliminate bad observations.

Analyze Sensitivity. Once you have some data you can build it into your model and start making trial runs. Particularly if you have relied on an estimate, you might want to run your model with values above and below the estimated values to determine system sensitivity to that parameter. If you find that the system is sensitive to an estimated value (e.g. the results change significantly with a change to the input parameter), then you can determine if it is worth a greater investment to obtain a more reliable value. This is one potential solution to the problems of bias and inaccuracy discussed in the initial article. But more than that, it is also a good way to iteratively determine how much time to spend on your input data.

Adjust Detail. Sometimes the quality of the available data can help you determine the appropriate level of detail for a model. If the data you intend to use is not very good, then there is little point to building a highly detailed model. This is not to imply that such a model is of no value, after all every model is just a representation or estimate of reality – no model will be perfect. But it is important to represent to your stakeholders the relative accuracy of the model and its underlying data.

This was a quick overview of some steps to data collection. Whole textbook chapters have been written about each of these, so be sure to look for greater detail when you are ready.

Dave Sturrock
VP Products – Simio LLC